Oil prices fell more than 2% on Wednesday as a large build in U.S. crude and gasoline stockpiles signalled demand weakness while concern about a new China-U.S. trade war fuelled fears of softer economic growth.

U.S. crude oil inventories increased more than expected as production picked up, while the build in gasoline stocks extended to almost three months.

Oil futures fell Wednesday, feeling pressure after industry data showed a large rise in U.S. crude inventories and as investors feared a U.S. -China trade battle will dent demand.

Crude oil inventories and gasoline stocks saw larger than expected builds last week, leading to a renewed sell off in oil

Thanks to abundant supply and fairly flat demand, oil prices are forecast to fall — unless tariffs and geopolitics get in the way.

Oil prices dropped over 1% on Wednesday as rising U.S. stockpiles and concern about a new Sino-U.S. trade war fuelled fears of weaker economic growth, offseting U.S. President Donald Trump's renewed push to eliminate Iranian crude exports.

President Trump delayed tariffs on Mexico and Canada, but imposed 10% levies on China, prompting Beijing to retaliate. Follow along for live updates on stocks and markets, including the Dow Jones Industrial Average,